A partnership can be an effective structure to split income within the tax laws. The structure also offers investors freedom to pool capital, skill and expertise. However, the liability of a partnership is also unlimited (except in the case of a limited partnership) and extends to debts incurred by a partner without the consent of the other partners.

In the main, a partnership as a tax structure essentially has the following characteristics:

  • a partnership is not a separate legal entity and partners ...

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